FX.co ★ Offshore Yuan Remains Steady in Thin Trading

The offshore yuan remained stable at approximately 7.27 per dollar for a second consecutive session. This stability comes amidst lighter market activity due to Labor Day holidays. Investors exercised caution as recent PMI figures hinted at the early impacts of tariffs imposed by the Trump administration. The official manufacturing PMI declined more significantly than predicted, dropping to 49 from 50.5 in March. Concurrently, the non-manufacturing PMI revealed slower growth in the construction and services sectors than anticipated. These data points present a grim initial view of China’s economic health following the U.S. administration’s implementation of extensive 145% tariffs on Chinese imports. The situation has rekindled appeals for additional economic stimulus in light of the ongoing trade friction between the two nations. On Wednesday, President Trump once again defended the heavy tariffs on China, designating the country as the primary "chief-ripper-offer" in trade, amidst persistent economic worries. Despite this, reports early Thursday suggested that President Trump was optimistic about the possibility of securing a trade agreement with China.